AHMEDABAD: Days after General Motors (GM) increased stake in its Indian operations, the company on Saturday announced it will hike its production capacity at the Halol plant.

GM had in October raised its stake in its Indian operations to 93 per cent by buying 43 per cent from its Chinese partner Shanghai Automotive Industry Corporation Group for an undisclosed sum. The US carmaker, which is all set to launch a new multi-purpose vehicle (MPV) 'Enjoy', said it will soon have 1.10 lakh units annual commissioned capacity at Halol. The installed capacity currently is 85,000 units.

"We plan to roll out Enjoy in the next couple of months. The capacity at Halol was short, so it is being expanded. With the inauguration of a press shop, it is now an integrated manufacturing plant," said vice-president (corporate communication) P Balendran. The company has invested over $ 1 billion in India so far, an official statement said.

He added that after the launch of Chevrolet Sail U-VA a hatchback, the company planned to roll out a new sedan model of Sail by next month. The new model will be company's sixth launch this year.

GM has already started trial production of Enjoy at the Halol plant. Company officials hinted that they will start commercial production of the MPV by early next year.

The engines for the MPV will be made at GM's Talegaon plant in Maharashtra and the car at Halol.